PSH preps 3-pronged strategy
SET-listed developer Pruksa Holding Plc (PSH) will re-market some launched projects, tap Chinese buyers and promote precast factories for outside jobs in the hopes of seeing a market recovery in the second half.
Deputy group chief executive Supattra Paopiamsap said the company will focus on segments with potential and projects that had good sales rates for the remainder of this year.
In the second half, the company will launch only seven new projects worth a total 8.78 billion baht. Its total this year is projected at 12 projects worth a combined 15 billion baht, the lowest number of new launches since 2005.
Pruksa has 160 active projects in Greater Bangkok and major provinces in the pipeline, with unsold inventory worth a total 93.9 billion baht. It will select 19 of them to re-market in the second half.
These projects had potential with better feedback than others or at least 50% in sales rate. Their combined project value was 25 billion baht, of which 12 billion baht remained for sale.
Ten projects are townhouses near a mass transit station with unit prices of 2-3 million baht. Six are single detached houses near either a mass transit station or an expressway with units priced at 5-10 million baht.
The company aims to have 5 billion baht in presales from the 19 projects in the second half, said Piya Prayong, the newly promoted chief executive of Pruksa Real Estate, a PSH subsidiary.
With new projects slashed, Pruksa cut its presales target to 28 billion baht from 38 billion baht projected in February. Last year it recorded 35.6 billion baht in presales.
PSH reported 9.57 billion baht in presales in the first half, down 71% year-on-year, as it launched only five new projects worth 5.18 billion baht in the first half.
The revenue in the period totalled 13.3 billion baht with a net profit of 1.34 billion baht, down 32% and 49% year-on-year, respectively. It also revised down the revenue target to 31 billion baht from 40 billion baht.
Mr Piya said the company is negotiating with seven property agents in China to help it redesign and market condo projects to match Chinese buyers' requirements.
"Property demand from foreign buyers will grow as Thailand ranks first in the global Covid-19 recovery index," he said. "We will boost sales from foreign buyers to higher than 10% now."
Mrs Supattra said the company planned to promote its seven precast concrete factories as a new business unit and take orders from other developers to make use of total capacity of 1,120 units per month.
Applying from Germany, five factories are located in Lam Luk Ka and two are in Nawa Nakhon.